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Is big labor a thing of the past?

This is a rush transcript from "Hannity," December 11, 2012. This copy may not be in its final form and may be updated.

SEAN HANNITY, HOST: Today marked a major legislative victory for Republicans in Michigan, it was also a significant defeat for big labor and that movement in a state where unions have long reigned supreme. Not even a last minute campaign-style stop yesterday by the president of the United States himself was enough to halt the momentum behind the right to work movement.

However, as expected, liberals were out in full forced today lobbying threats in every direction following their big loss. Now, that includes the Reverend Jesse Jackson who is now demanding that left-wingers from coast to coast rise up for a nationwide strike.

Well, that's really going to help the economy. Take a look.

(BEGIN VIDEO CLIP)

REV. JESSE JACKSON, RAINBOW PUSH COALITION: These workers in the state must fight back and draw a line in the sand. That's why I am going to suggest a major one-day strike. A major one-day march on Washington for jobs and justice. Time now for massive, dissident, direct action to bring about this shift in the flow of the wind.

(END VIDEO CLIP)

HANNITY: All right. We are monitoring possible plans for such an event. No more details have emerged as of now but we will keep you posted.

Joining me now with reaction to the reverend's comments and the events that were unfolding today, author of "Suicide of a Superpower," former presidential candidate Patrick J. Buchanan and former Clinton special counsel, Fox News contributor, Lanny Davis.

Guys, before we get to that, let's show what you happened on the state floor in Michigan today. State Representative Douglas Geiss said, "There will be blood." Watch this.

(BEGIN VIDEO CLIP)

DOUGLAS GEISS, MICHIGAN STATE REPRESENTATIVE: And we are going to pass something that will undue 100 years of labor relations. And there will be blood. There will be repercussions.

(END VIDEO CLIP)

HANNITY: There will be blood.

Lanny Davis, you are a pretty left-wing, you are a liberal. I assume a pro-choice liberal. Let me ask you this because this is what it comes down to to me. If you can force people, workers, to join the union, and you can force them to pay dues that they don't want to pay, join a union they don't want to join, tell me how that's not legalized theft? Because I view that as stealing if you are going to force people -- you are pro-choice -- to do something they don't want to do or they can't work. How do you support that as a pro-choice person?

LANNY DAVIS, FORMER WHITE HOUSE SPECIAL COUNSEL: I will answer your question directly but I would like to condemn the violent attacks on anybody who dissents, and I think that I am pro-labor and pro-labor movement, that that was shameful and it makes those of us who are pro-labor, who are Democrats supporting organized labor ashamed that that kind of violence should be posted on somebody who is dissenting from the point of view.

So, to answer your question, the union shop requires everybody to either pay dues for the benefits that unions have negotiated or pay a substitute for those dues if they don't want to join the union. That is only fair so they don't get a free ride for the benefits that have been negotiated through the union. But I believe in an election, and with a secret ballot, which is why I oppose card check. And if the workers decide by majority vote not to unionize, then they should have a right to do so.

HANNITY: All right. Well, I appreciate your honesty there. Pat Buchanan, tell me where I might be wrong here. If you can force -- workers can't work unless they join a union. They are forced to pay. That money is used for political purposes which they may disagree with, tell me how that is not legalized stealing or blackmail or use whatever term you want to use.

PATRICK J. BUCHANAN, SYNDICATED COLUMNIST AND AUTHOR: Well, I have personal experience. I joined the Globe Democrat in Saint Louis in 1962 and I had to join the union within 60 days or I would be fired. Now, the union argues that, OK, even if we don't force you to join the union, you should be obligated to pay if you are not in the union and the union has negotiated all the contract and the benefits. That used to be called the agency shop.

Sean, that's what has been outlawed up there in Michigan today. What that means is a lot of folks who have been paying dues to the union aren't going to pay them. Secondly, a lot of folks that are in the union say, why should I pay dues to the union? Why should I even belong to the union if I don't have to? This is a body blow to American labor. I think unseen in a long, long time. And to see it happen in Wisconsin and Indiana --

DAVIS: May I respond?

BUCHANAN: Go ahead.

DAVIS: Pat, you know that we are friends and I respect you. But the fact is that anybody who wants to decertify and have an election, the majority rules, just as it does when we elect our electors in states. The most votes will elect a president in a particular state will get the electoral vote. Just as in a union, there can be elections and majority rules --

HANNITY: Lanny, let me stop you.

(CROSSTALK)

Wait a minute. No, no, no. You are missing the point. If you don't want to join this union --

DAVIS: Right, you don't have to --

HANNITY: Wait a minute, hang on. There's no choice here for people who want to work. You must join the union, you must pay money or you can't work. I thought you were pro choice?

DAVIS: If you don't join the union, I favor the option not to join the union --

HANNITY: You still have to pay.

DAVIS: You have to pay something equivalent to the union dues to pay for the benefits or you get a free ride. That's the concept, Pat. It isn't you have to be in the union, you can vote the union out by majority vote.

BUCHANAN: But this is the idea, exactly what I'm talking about. This is what we call an agency shop. You don't have to join a union, but you do have to pay if the union negotiated your contract and you are getting the benefits mentioned, health and all the rest of it. That has been outlawed, though, Lanny. And they say, you cannot require somebody to pay something to a union in which he disbelieves. You've got the idea of individualism and freedom up against community and solidarity and equality and comradeship, it's a conflict of values --

DAVIS: Don't forget the words free ride, Pat, free ride.

HANNITY: We have to take a break, guys.

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Hannity, hosted by Sean Hannity, airs on Weekdays at 10PM ET on Fox News Channel.